PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Q2 2025 unaudited financials show total assets surged to **$1.51 billion** due to the Edge Autonomy acquisition, alongside increased net losses and significant cash used in operations [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a substantial increase in total assets and a shift to positive shareholders' equity, primarily driven by the Edge Autonomy acquisition - Total assets increased dramatically to **$1.51 billion** as of June 30, 2025, from **$292.6 million** at December 31, 2024, primarily driven by the Edge Autonomy acquisition, which resulted in a significant increase in Goodwill (to **$789.3 million**) and Intangible Assets (to **$396.1 million**)[12](index=12&type=chunk) Condensed Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $244,522 | $125,925 | | Goodwill | $789,254 | $71,161 | | Intangible assets, net | $396,130 | $61,788 | | **Total Assets** | **$1,508,186** | **$292,617** | | **Total Current Liabilities** | $167,429 | $149,343 | | Long-term debt, net | $185,464 | $124,464 | | Warrant liabilities | $23,014 | $55,285 | | **Total Liabilities** | **$448,701** | **$344,526** | | **Total Shareholders' Equity (Deficit)** | **$907,592** | **($188,714)** | - Total shareholders' equity shifted from a deficit of **$188.7 million** to a positive equity of **$907.6 million**, mainly due to a large increase in Additional Paid-in Capital from stock issued for the Edge acquisition and a common stock offering[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The statements of operations show a significant decline in revenues and a swing to gross loss, leading to substantially increased net losses for Q2 and YTD 2025 Key Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $61,760 | $78,111 | $123,155 | $165,903 | | Gross Profit (Loss) | ($19,064) | $12,984 | ($10,023) | $27,809 | | Operating Income (Loss) | ($91,891) | ($7,130) | ($106,208) | ($10,707) | | Net Income (Loss) | ($96,979) | ($18,087) | ($99,927) | ($26,183) | | Basic and Diluted EPS | ($1.41) | ($0.42) | ($1.66) | ($0.59) | - Revenues decreased **21%** in Q2 2025 compared to Q2 2024, with the company swinging from a gross profit of **$13.0 million** in Q2 2024 to a gross loss of **$19.1 million** in Q2 2025[15](index=15&type=chunk) - Operating expenses increased significantly, driven by a sharp rise in Selling, General and Administrative (SG&A) expenses to **$54.5 million** and Transaction Expenses to **$16.6 million** in Q2 2025, largely due to the Edge Autonomy acquisition[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements indicate a substantial increase in cash used in operations and investing activities, offset by significant cash provided by financing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($132,744) | ($6,742) | | Net cash provided by (used in) investing activities | ($161,729) | $544 | | Net cash provided by (used in) financing activities | $323,489 | $6,929 | | **Net increase (decrease) in cash** | **$29,488** | **$554** | - Cash used in operating activities increased significantly to **$132.7 million** for the first six months of 2025, compared to **$6.7 million** in the prior year period, driven by a larger net loss and unfavorable changes in working capital[23](index=23&type=chunk) - Investing activities used **$161.7 million**, primarily for the acquisition of businesses (**$151.8 million**)[23](index=23&type=chunk) - Financing activities provided a substantial **$323.5 million** in cash, mainly from proceeds from issuance of common stock (**$328.7 million**) and new debt (**$190.3 million**), used for acquisition, debt repayments, and preferred stock repurchase[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes provide further context on significant financial events, including business combinations, debt, equity transactions, income taxes, and commitments [Note C – Business Combinations](index=18&type=section&id=Note%20C%20%E2%80%93%20Business%20Combinations) This note details the acquisition of Edge Autonomy, including consideration, goodwill, intangible assets recognized, and its initial financial contribution - On June 13, 2025, the Company completed the acquisition of Edge Autonomy, a provider of uncrewed airborne system (UAS) technology[44](index=44&type=chunk) Edge Autonomy Acquisition Consideration (June 13, 2025, in thousands) | Consideration Type | Value | | :--- | :--- | | Cash consideration | $160,000 | | Fair value of common stock issued | $862,561 | | Payable to the seller | $7,171 | | **Total Purchase Consideration** | **$1,029,732** | - The acquisition resulted in the recognition of **$709.5 million** in goodwill and **$332.4 million** in intangible assets, which are preliminary and subject to adjustment[45](index=45&type=chunk)[47](index=47&type=chunk) - For the period from the acquisition date (June 13) to June 30, 2025, Edge Autonomy contributed **$5.9 million** in revenue and a net loss of **$34.9 million**[50](index=50&type=chunk) [Note I – Debt](index=24&type=section&id=Note%20I%20%E2%80%93%20Debt) This note outlines the increase in total debt, including a new term loan and a repaid seller note, primarily for the Edge Autonomy acquisition - Total debt, net of issuance costs, increased to **$190.7 million** as of June 30, 2025, from **$125.7 million** at year-end 2024[66](index=66&type=chunk) - In June 2025, the company's subsidiary entered into a new **$90.0 million** term loan with JPMorgan Chase Bank to help finance the Edge Autonomy acquisition[74](index=74&type=chunk) - The company also entered into a **$100.0 million** Seller Note with an affiliate of AE Industrial Partners to finance the acquisition, which was fully repaid in June 2025 using proceeds from an equity offering, resulting in **$20.0 million** of interest expense[75](index=75&type=chunk)[76](index=76&type=chunk) [Note K – Warrants and Capital Stock Transactions](index=26&type=section&id=Note%20K%20%E2%80%93%20Warrants%20and%20Capital%20Stock%20Transactions) This note details warrant redemptions and exercises, alongside a significant equity offering that generated substantial net proceeds - In February 2025, the company redeemed all outstanding public warrants, and during the first six months of 2025, **6.7 million** public warrants were exercised for proceeds of **$77.5 million**[83](index=83&type=chunk) - During the first six months of 2025, **5.1 million** private warrants were exercised (**4.6 million** on a cashless basis), leaving **2.6 million** outstanding as of June 30, 2025[86](index=86&type=chunk)[87](index=87&type=chunk) - In June 2025, the company completed an equity offering, issuing **15.5 million** shares of common stock for net proceeds of **$245.0 million**[88](index=88&type=chunk) [Note L – Income Taxes](index=27&type=section&id=Note%20L%20%E2%80%93%20Income%20Taxes) This note explains the income tax benefit recognized in Q2 2025, primarily due to the realization of deferred tax assets following the Edge Autonomy acquisition - The company recorded an income tax benefit of **$32.6 million** for Q2 2025 and **$32.8 million** for the six months ended June 30, 2025, resulting in a negative effective tax rate of **(25.2)%** for the quarter[89](index=89&type=chunk)[92](index=92&type=chunk) - The tax benefit is primarily due to the recognition of deferred tax assets and a corresponding reduction of the valuation allowance, as the company determined it is now more-likely-than-not that a portion of these assets will be realized following the acquisition of Edge Autonomy[92](index=92&type=chunk) [Note M – Commitments and Contingencies](index=29&type=section&id=Note%20M%20%E2%80%93%20Commitments%20and%20Contingencies) This note details the settlement of a class action lawsuit and the ongoing status of a derivative lawsuit, with expected recovery through D&O insurance - The Lemen v. Redwire Corp. class action lawsuit was settled for **$8.0 million**, with the company paying this amount into escrow during the first six months of 2025[96](index=96&type=chunk) - A derivative lawsuit, Yingling v. Cannito, et al., remains pending, with the company believing allegations are without merit and expecting recovery through D&O insurance[98](index=98&type=chunk) [Note N – Convertible Preferred Stock](index=31&type=section&id=Note%20N%20%E2%80%93%20Convertible%20Preferred%20Stock) This note covers the issuance of PIK dividends, the repurchase of preferred stock, and the outstanding shares' convertibility and liquidation preference - In May 2025, the company issued **8,068.27** shares of Series A Convertible Preferred Stock as a paid-in-kind (PIK) dividend, valued at **$33.3 million**[104](index=104&type=chunk) - In June 2025, the company used proceeds from its common stock issuance to repurchase **11,195.81** shares of its Convertible Preferred Stock from Bain Capital for **$61.5 million**[105](index=105&type=chunk) - As of June 30, 2025, **103,855.14** outstanding shares of Convertible Preferred Stock were convertible into approximately **34.8 million** shares of common stock and had a liquidation preference of **$567.3 million**[110](index=110&type=chunk)[112](index=112&type=chunk) [Note O – Revenues](index=35&type=section&id=Note%20O%20%E2%80%93%20Revenues) This note details revenue by customer group, significant unfavorable EAC adjustments impacting gross profit, and remaining performance obligations Revenue by Customer Group (in thousands) | Customer Group | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Civil space | $15,600 | $25,052 | $33,735 | $47,978 | | National security | $14,821 | $16,247 | $34,289 | $30,169 | | Commercial and other | $31,339 | $36,812 | $55,131 | $87,756 | | **Total revenues** | **$61,760** | **$78,111** | **$123,155** | **$165,903** | - The company recorded significant net unfavorable estimate at completion (EAC) adjustments, which reduced gross profit by **$25.2 million** in Q2 2025 and **$28.3 million** in the first six months of 2025[118](index=118&type=chunk) - The 2025 unfavorable EAC adjustments were primarily due to a **$14.7 million** adjustment on a program in the RF systems offerings, stemming from increased technical complexity and costs needed to meet customer specifications[118](index=118&type=chunk) - As of June 30, 2025, the company had **$242.8 million** in remaining performance obligations, with approximately **78%** expected to be recognized as revenue within the next 12 months[119](index=119&type=chunk) [Note P – Equity-Based Compensation](index=38&type=section&id=Note%20P%20%E2%80%93%20Equity-Based%20Compensation) This note explains the substantial increase in equity-based compensation expense, primarily driven by the Edge Incentive Units related to the Edge Autonomy acquisition - Total equity-based compensation expense was **$32.7 million** for Q2 2025, a significant increase from **$1.9 million** in Q2 2024[136](index=136&type=chunk) - The increase was primarily driven by **$29.6 million** in expense related to the Edge Incentive Units, which were amended and partially vested in connection with the Edge Autonomy acquisition[122](index=122&type=chunk)[136](index=136&type=chunk) - As of June 30, 2025, approximately **$57.3 million** of unrecognized compensation cost related to unvested Tranche II and III Edge Incentive Units remains, expected to be recognized over a weighted-average period of **1.97 years**[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **21%** Q2 2025 revenue decrease, negative gross margin, and surging operating expenses, attributing them to EAC adjustments and the Edge acquisition, while highlighting a **1.47** book-to-bill ratio and sufficient liquidity [Results of Operations](index=46&type=section&id=Results%20of%20Operations) This section details the **21%** Q2 revenue decline, the swing to a gross loss, and the significant increase in SG&A and interest expenses, largely due to acquisition-related costs Comparison of Three Months Ended June 30, 2025 and 2024 (in thousands) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $61,760 | $78,111 | ($16,351) | (21)% | | Gross Profit (Loss) | ($19,064) | $12,984 | ($32,048) | (247)% | | SG&A Expenses | $54,464 | $18,088 | $36,376 | 201% | | Operating Loss | ($91,891) | ($7,130) | ($84,761) | 1,189% | | Net Loss | ($96,979) | ($18,092) | ($78,887) | 436% | - The decrease in Q2 revenue was primarily due to **$17.7 million** of net unfavorable EAC adjustments in 2025 versus **$3.1 million** in 2024, and timing of production on large contracts, partially offset by **$13.0 million** in revenue from the Edge Autonomy and Hera acquisitions[170](index=170&type=chunk) - The increase in SG&A expenses was primarily due to a **$30.7 million** increase in equity-based compensation, including **$29.6 million** related to the Edge Incentive Units[173](index=173&type=chunk) - Interest expense increased by **$20.7 million**, mainly due to **$20.0 million** of interest expense recognized on the repayment of the Seller Note used for the Edge acquisition[177](index=177&type=chunk) [Key Performance Indicators](index=54&type=section&id=Key%20Performance%20Indicators) This section presents the book-to-bill ratio and contracted backlog, noting the impact of the Edge Autonomy acquisition on both metrics Book-to-Bill Ratio | Period | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Three Months Ended** | 1.47 | 1.47 | | **Last Twelve Months** | 0.87 | 1.28 | - For Q2 2025, contracts awarded included **$73.7 million** of acquired contract value from the Edge Autonomy acquisition[202](index=202&type=chunk) Contracted Backlog (in thousands) | Date | Backlog | | :--- | :--- | | June 30, 2025 | $329,483 | | December 31, 2024 | $296,652 | - The increase in backlog is primarily due to the addition of **$73.7 million** in contract value acquired with Edge Autonomy[205](index=205&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company reports **$76.5 million** in cash and **$35.0 million** in available borrowings, with management confident in sufficient liquidity for the next twelve months - As of June 30, 2025, the company had **$76.5 million** in cash and cash equivalents and **$35.0 million** in available borrowings from its credit facilities[210](index=210&type=chunk) - Management believes existing sources of liquidity will be sufficient to meet working capital needs and comply with debt covenants for at least the next twelve months[213](index=213&type=chunk) [Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20Regarding%20Market%20Risk) As a smaller reporting company, Redwire is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Redwire is not required to provide quantitative and qualitative disclosures about market risk[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of June 30, 2025, due to material weaknesses in internal control over financial reporting, with remediation planned by December 31, 2025 - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to material weaknesses in internal control over financial reporting[227](index=227&type=chunk) - Identified material weaknesses include insufficient segregation of duties, lack of formal controls over financial reporting, and ineffective IT general controls[228](index=228&type=chunk)[229](index=229&type=chunk) - The company is implementing a remediation plan, targeting full remediation for U.S. operations (excluding Edge Autonomy) by December 31, 2025, with European operations extending beyond this date[233](index=233&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with details on the Lemen v. Redwire settlement and the ongoing Yingling v. Cannito derivative lawsuit provided in Note M - The company is subject to litigation from time to time in the ordinary course of business, with details on specific pending matters found in Note M – Commitments and Contingencies[236](index=236&type=chunk)[237](index=237&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) New risks from the Edge Autonomy acquisition include integration challenges, shareholder dilution, dependence on UAS market adoption, increased competition, regulatory complexities, and geopolitical risks from Ukraine sales - The company may be unable to successfully integrate Edge Autonomy's operations and realize anticipated synergies due to challenges in combining business practices, cultures, and systems[239](index=239&type=chunk) - Following the acquisition and a related stock offering, AE Industrial Partners beneficially owns approximately **55.6%** of the company's common and convertible preferred stock (on an as-converted basis), giving it majority voting power[242](index=242&type=chunk) - The company's future growth now depends on the demand for and adoption of uncrewed aircraft systems (UAS) technology, an emerging market[254](index=254&type=chunk) - A significant portion of Edge Autonomy's historical sales were to customers in Ukraine, which have been declining and may continue to decline, posing a risk to future revenue[255](index=255&type=chunk)[262](index=262&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - There were no unregistered sales of equity securities during the period[265](index=265&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) No directors or officers reported adopting, modifying, or terminating Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers informed the company of any adoption, modification, or termination of a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[268](index=268&type=chunk)

Financial Data and Key Metrics Changes - Redwire recorded revenue of $61.8 million, showing a sequential increase, but faced a sequential decrease in adjusted EBITDA from negative $2.3 million to negative $27.4 million due to unfavorable estimated at completion (EAC) changes [24][25]. - The net loss decreased sequentially to negative $97 million, influenced by EACs, non-cash expenses, and transaction costs [25][26]. - Total liquidity reached a record level of $113.6 million, a 27.4% improvement from the previous quarter and a 103.4% year-over-year increase [26][27]. Business Line Data and Key Metrics Changes - The acquisition of Edge Autonomy was completed, enhancing Redwire's capabilities in multi-domain operations and contributing to a backlog of $329.5 million as of June 30, 2025 [15][22]. - The Stalker platform was added to the Defense Innovation Unit's UAS Blue List, facilitating easier access to U.S. government contracts [7][62]. - The U.S. Army's Long Range Reconnaissance Program (LRR) has an estimated funding of $325 million for fiscal year 2026, positioning Redwire Edge Autonomy favorably for participation [10][83]. Market Data and Key Metrics Changes - The U.S. government is funding key programs, including approximately $24 billion for the Golden Dome and $2.6 billion for NASA Gateway, indicating significant growth potential for Redwire [18][21]. - NATO allies committed to invest 5% of GDP annually in defense spending, which could benefit Redwire's operations in Europe [20][21]. Company Strategy and Development Direction - Redwire's growth strategy focuses on five key principles: providing foundational products, delivering multi-domain platforms, exploring new markets, unlocking breakthrough technologies, and executing accretive M&A [5][6]. - The creation of SpaceMD aims to commercialize drug development in space, leveraging microgravity for innovative therapeutics [36][39]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the U.S. government budgeting process, which has delayed some contract awards into 2026, but noted positive trends in funding opportunities [17][21]. - The company remains optimistic about future growth, despite setbacks in adjusted EBITDA, emphasizing the long-term nature of space investments [40][41]. Other Important Information - Redwire's contract awards during 2025 totaled $90.6 million, with a book-to-bill ratio of 1.47 times, indicating a strong pipeline of opportunities [22]. - The acquisition of Edge Autonomy is expected to lower the proportion of business exposed to EAC volatility, enhancing financial stability [34][50]. Q&A Session Summary Question: How does the company balance accounting controls and engineering complexity? - Management explained that EACs introduce volatility during development phases, and a complete portfolio review was conducted to understand these dynamics before reinstating EBITDA guidance [46][48]. Question: What was the due diligence process for the Edge Autonomy acquisition? - The acquisition was based on unique technologies and expected free cash flow positivity, with Edge Autonomy showing strong financial results during due diligence [52][53]. Question: What is the impact of the Blue List inclusion for Edge Autonomy? - Inclusion on the Blue List enhances credibility and simplifies procurement processes for federal agencies, making it easier to compete for contracts [62][63]. Question: What is the expected margin profile going forward? - Management indicated that while EACs were taken conservatively, future cash flow and margins are expected to improve as projects progress [81]. Question: What is the funding status for the LRR program? - The $325 million funding is for fiscal year 2026, with expectations for prompt execution due to the administration's focus on UAS dominance [83][87].

Q2 2025 Investor Presentation August 7, 2025 Use of Data Industry and market data used in this Presentation have been obtained from third-party industry publications and sources, as well as from research reports prepared for other purposes. Redwire has not independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness. This data is subject to change. Statements other than historical facts, including, but not limited to, those concerning market condit ...

Core Insights - Redwire Corporation reported a quarterly loss of $0.39 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.11, marking an earnings surprise of -254.55% [1] - The company's revenues for the quarter ended June 2025 were $61.76 million, missing the Zacks Consensus Estimate by 38.76%, and down from $78.11 million a year ago [2] - Redwire Corporation's shares have declined approximately 10.6% year-to-date, contrasting with the S&P 500's gain of 7.1% [3] Financial Performance - Over the last four quarters, Redwire Corporation has consistently failed to meet consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $144.6 million, and for the current fiscal year, it is -$0.15 on revenues of $461.43 million [7] Industry Context - The Aerospace - Defense industry, to which Redwire Corporation belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Redwire's stock performance [5] Future Outlook - The estimate revisions trend for Redwire Corporation was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Investors are encouraged to monitor changes in earnings estimates for the upcoming quarters and the current fiscal year [4][7]

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) This section provides an overview of Redwire's Q2 2025 performance, strategic developments including the Edge Autonomy acquisition, and the company's financial outlook for 2025 [Q2 2025 Highlights & Strategic Developments](index=1&type=section&id=Q2%202025%20Highlights%20%26%20Strategic%20Developments) Redwire Corporation reported its Q2 2025 financial results, highlighting the completion of the Edge Autonomy acquisition, which transforms the company into an integrated space and defense tech firm. Key operational milestones include the Stalker uncrewed aerial system's addition to the DoD's Blue List and a successful Roll-Out Solar Array deployment test. Financially, the company reported a sequential increase in Book-to-Bill ratio to 1.47, but experienced a decrease in revenues and a significant net loss, alongside a record total liquidity - Completed acquisition of **Edge Autonomy** on June 13, 2025, transforming Redwire into an **integrated space and defense tech company** focused on advanced technologies[1](index=1&type=chunk)[3](index=3&type=chunk) - **Stalker uncrewed aerial system** added to **Department of Defense's Blue List** of Approved Drones; awarded a prototype phase agreement by the U.S. Army in July 2025[1](index=1&type=chunk) - Achieved key technical milestones, including a successful **Roll-Out Solar Array deployment test** for lunar Gateway and a **Critical Design Review for Mason**, a lunar and Martian manufacturing technology[1](index=1&type=chunk) - Formed **SpaceMD**, a new entity to commercialize Redwire's **microgravity drug development breakthroughs**, and signed a royalty agreement with ExesaLibero Pharma, Inc[4](index=4&type=chunk) Q2 2025 Key Financial Highlights | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (YoY) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Revenues | $61.8 | $78.1 | -20.9% | | Net Loss | $(97.0) | $(18.1) | +$78.9 | | Adjusted EBITDA | $(27.4) | $1.6 | -$29.0 | | Total Liquidity | $113.6 | $55.8 | +$57.8 | | Book-to-Bill Ratio | 1.47 | 1.47 | 0.00 | | Net cash used in operating activities | $(87.7) | $(9.5) | +$78.2 | | Free Cash Flow | $(93.5) | $(11.2) | +$82.3 | [Company Overview](index=3&type=section&id=Company%20Overview) Redwire Corporation is an integrated space and defense technology company focused on advanced technologies, including space infrastructure, autonomous systems, and multi-domain operations, leveraging digital engineering and AI automation. The company employs approximately 1,300 individuals across the United States and Europe - Redwire Corporation (NYSE:RDW) is an **integrated space and defense tech company** focused on advanced technologies[12](index=12&type=chunk) - The company is building the future of **space infrastructure, autonomous systems, and multi-domain operations** leveraging digital engineering and AI automation[12](index=12&type=chunk) - Redwire has approximately **1,300 employees** located throughout the United States and Europe[12](index=12&type=chunk) [2025 Financial Forecast](index=2&type=section&id=2025%20Financial%20Forecast) Redwire provided its full-year revenue forecast for 2025, including the impact of the Edge Autonomy acquisition from its closing date. However, due to uncertain timing of government contracting, the company has withdrawn its previously provided Adjusted EBITDA forecast for the year 2025 Full Year Revenue Forecast | Scenario | Forecast (Millions USD) | | :-------------------------------------------------------------------- | :---------------------- | | Redwire (including Edge Autonomy from June 13, 2025) | $385 - $445 | | Combined company (assuming Edge Autonomy acquisition on Jan 1, 2025) | $470 - $530 | - The Company is **withdrawing its previously provided Adjusted EBITDA forecast** for the twelve months ended December 31, 2025, due to uncertain timing of government contracting[7](index=7&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Redwire's condensed consolidated balance sheets, statements of operations, and cash flows, reflecting the financial impact of the Edge Autonomy acquisition and operational performance [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in total assets and liabilities from December 31, 2024, to June 30, 2025, primarily driven by the Edge Autonomy acquisition. Goodwill and intangible assets saw substantial increases, reflecting the acquisition's impact Condensed Consolidated Balance Sheet Highlights (in thousands of U.S. dollars) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total current assets | $244,522 | $125,925 | | Property, plant and equipment, net | $47,511 | $17,837 | | Intangible assets, net | $396,130 | $61,788 | | Goodwill | $789,254 | $71,161 | | Total assets | $1,508,186 | $292,617 | | Total current liabilities | $167,429 | $149,343 | | Long-term debt, net | $185,464 | $124,464 | | Total liabilities | $448,701 | $344,526 | | Total shareholders' equity (deficit) | $907,592 | $(188,714) | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Redwire reported a decrease in revenues and a substantial increase in net loss for both the three and six months ended June 30, 2025, compared to the prior year. The increased net loss was significantly impacted by higher cost of sales, selling, general and administrative expenses, and interest expense, partly due to acquisition-related activities and unfavorable EAC adjustments Condensed Consolidated Statements of Operations Highlights (in thousands of U.S. dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $61,760 | $78,111 | $123,155 | $165,903 | | Cost of sales | $80,824 | $65,127 | $133,178 | $138,094 | | Gross profit (loss) | $(19,064) | $12,984 | $(10,023) | $27,809 | | Operating income (loss) | $(91,891) | $(7,130) | $(106,208) | $(10,707) | | Interest expense, net | $23,755 | $3,009 | $27,349 | $5,927 | | Net income (loss) | $(96,979) | $(18,087) | $(99,927) | $(26,183) | | Net income (loss) available to common shareholders | $(126,718) | $(27,791) | $(133,106) | $(38,929) | | Basic and diluted EPS | $(1.41) | $(0.42) | $(1.66) | $(0.59) | - Net Loss for Q2 2025 included over **$(90.0) million** in expenses related to non-cash, transaction-related, EAC adjustments, and non-routine activity, including **$29.6 million** for equity-based compensation, **$16.6 million** in transaction expenses, **$25.2 million** in net unfavorable EAC impacts, and **$20.0 million** in interest expense[7](index=7&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows from operating activities for the six months ended June 30, 2025, significantly increased in usage compared to the prior year, primarily due to the net loss and changes in working capital. Investing activities saw a large outflow due to business acquisitions, while financing activities generated substantial cash, mainly from proceeds from debt and common stock issuance Condensed Consolidated Statements of Cash Flows Highlights (in thousands of U.S. dollars) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(132,744) | $(6,742) | | Net cash provided by (used in) investing activities | $(161,729) | $544 | | Net cash provided by (used in) financing activities | $323,489 | $6,929 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $29,488 | $554 | | Cash, cash equivalents and restricted cash at end of period | $78,559 | $30,832 | - Acquisition of businesses, net of cash acquired, resulted in a cash outflow of **$(151,791) thousand** for the six months ended June 30, 2025[31](index=31&type=chunk) - Proceeds from issuance of common stock contributed **$328,684 thousand** to financing activities for the six months ended June 30, 2025[31](index=31&type=chunk) [Supplemental Non-GAAP Financial Information](index=9&type=section&id=Supplemental%20Non-GAAP%20Financial%20Information) This section provides reconciliations for non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, highlighting their significant changes in Q2 2025 [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) Redwire provides a reconciliation of Net Income (Loss) to Adjusted EBITDA, a non-GAAP measure used to evaluate operating performance. For Q2 2025, Adjusted EBITDA was a loss of $(27.4) million, a significant decrease from the prior year, primarily due to increased interest expense, transaction expenses, equity-based compensation, and warrant liability adjustments Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(96,979) | $(18,087) | $(99,927) | $(26,183) | | Interest expense, net | $23,755 | $3,009 | $27,349 | $5,927 | | Income tax expense (benefit) | $(32,604) | $15 | $(32,786) | $124 | | Depreciation and amortization | $5,060 | $2,925 | $8,106 | $5,678 | | Transaction expenses | $16,643 | $278 | $20,442 | $278 | | Equity-based compensation | $32,686 | $1,918 | $35,598 | $4,453 | | Warrant liability change in fair value adjustment | $16,326 | $8,977 | $2,692 | $10,052 | | **Adjusted EBITDA** | **$(27,394)** | **$1,625** | **$(29,662)** | **$5,906** | - Redwire incurred significant transaction expenses (**$16.6 million** in Q2 2025) and equity-based compensation (**$32.7 million** in Q2 2025) primarily from the Edge Autonomy acquisition, impacting Adjusted EBITDA[35](index=35&type=chunk)[36](index=36&type=chunk) [Free Cash Flow Reconciliation](index=10&type=section&id=Free%20Cash%20Flow%20Reconciliation) The reconciliation of Free Cash Flow shows a significant increase in cash usage for both the three and six months ended June 30, 2025, compared to the prior year. Free Cash Flow for Q2 2025 was $(93.5) million, reflecting increased net cash used in operating activities and higher capital expenditures Free Cash Flow Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(87,663) | $(9,506) | $(132,744) | $(6,742) | | Less: Capital expenditures | $(5,883) | $(1,687) | $(9,938) | $(4,054) | | **Free Cash Flow** | **$(93,546)** | **$(11,193)** | **$(142,682)** | **$(10,796)** | [Key Business Performance Indicators](index=11&type=section&id=Key%20Business%20Performance%20Indicators) This section analyzes Redwire's Book-to-Bill Ratio and Contracted Backlog, highlighting trends in new contracts and future revenue potential, significantly influenced by recent acquisitions [Book-to-Bill Ratio](index=11&type=section&id=Book-to-Bill%20Ratio) Redwire's book-to-bill ratio, an indicator of future revenue growth, remained at 1.47 for the three months ended June 30, 2025, consistent with the prior year. However, the Last Twelve Months (LTM) book-to-bill ratio decreased to 0.87, reflecting a lower level of contracts awarded relative to revenue over the longer period, despite significant acquired contract value Book-to-Bill Ratio (in thousands, except ratio) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Last Twelve Months Ended June 30, 2025 | Last Twelve Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------------- | | Contracts awarded | $90,563 | $114,437 | $227,058 | $374,269 | | Revenues | $61,760 | $78,111 | $261,353 | $292,000 | | **Book-to-bill ratio** | **1.47** | **1.47** | **0.87** | **1.28** | - For the three months ended June 30, 2025, **$73.7 million** of contracts awarded relates to the Edge Autonomy acquisition[44](index=44&type=chunk) - For the LTM ended June 30, 2025, contracts awarded includes **$95.7 million** of acquired contract value from Edge Autonomy and Hera Systems acquisitions[45](index=45&type=chunk) [Contracted Backlog](index=11&type=section&id=Contracted%20Backlog) Redwire's contracted backlog increased to $329.5 million as of June 30, 2025, from $296.7 million at December 31, 2024. This growth was primarily driven by acquisition-related contract value, particularly from the Edge Autonomy acquisition, which added $73.7 million during the period Contracted Backlog (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Organic backlog, ending balance | $255,070 | $280,969 | | Acquisition-related backlog, ending balance | $74,413 | $15,683 | | **Contracted backlog, ending balance** | **$329,483** | **$296,652** | - Acquisition-related contract value acquired during the period was **$73.7 million** for the six months ended June 30, 2025, primarily from the Edge Autonomy acquisition[47](index=47&type=chunk)[50](index=50&type=chunk) - Contracted backlog from foreign operations in Luxembourg and Belgium increased to **$117.4 million** as of June 30, 2025, from **$70.5 million** at December 31, 2024[51](index=51&type=chunk) [Important Disclosures & Investor Information](index=3&type=section&id=Important%20Disclosures%20%26%20Investor%20Information) This section provides essential investor information, including webcast details, disclaimers on financial projections, cautionary statements regarding forward-looking information, and disclosures on non-GAAP financial measures [Webcast and Investor Call Details](index=3&type=section&id=Webcast%20and%20Investor%20Call%20Details) Redwire will host a conference call and live webcast on August 7, 2025, at 9:00 a.m. ET to discuss the second quarter 2025 financial results. Details for accessing the live stream, dial-in numbers, and replay information are provided - Management will conduct a conference call starting at **9:00 a.m. ET on Thursday, August 7, 2025**, to review financial results for the second quarter ended June 30, 2025[8](index=8&type=chunk) - A live stream presentation will be available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=Htojl6k0[9](index=9&type=chunk) - A telephone replay of the call will be available for two weeks following the event by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and entering the access code 13755131[10](index=10&type=chunk) [Use of Projections](index=3&type=section&id=Use%20of%20Projections) This section serves as a disclaimer, stating that financial outlooks and projections are forward-looking statements based on assumptions subject to significant uncertainty, many beyond Redwire's control. It emphasizes that these projections are not audited and should not be considered a reliable prediction of future events - Financial outlook and projections are **forward-looking statements** based on assumptions inherently subject to **significant uncertainty** and contingencies, many of which are beyond Redwire's control[13](index=13&type=chunk) - Redwire's independent auditors have **not audited**, reviewed, compiled, or performed any procedures with respect to the financial projections[13](index=13&type=chunk) - The inclusion of financial projections should not be regarded as an indication that Redwire considers them **not a reliable prediction** of future events[13](index=13&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This statement warns readers that the press release contains forward-looking statements subject to numerous risks and uncertainties. It lists over 40 factors, including economic uncertainty, integration risks from acquisitions, competition, reliance on government contracts, and operational challenges, that could cause actual results to differ materially from expectations - Statements regarding expectations of performance or other matters affecting business, results of operations, or financial condition are "**forward-looking statements**" as defined by the "safe harbor" provisions in the Private Securities Litigation Reform Act of 1995[15](index=15&type=chunk) - Forward-looking statements are **not guarantees of future performance** and are subject to a number of **risks and uncertainties**, many of which involve factors or circumstances beyond the company's control[15](index=15&type=chunk) - Key risk factors include **economic uncertainty, integration risks, competition, dependence on U.S. government contracts, supply chain challenges**, and the inability to meet expected financial results[16](index=16&type=chunk) [Non-GAAP Financial Information Disclosure](index=5&type=section&id=Non-GAAP%20Financial%20Information%20Disclosure) This section clarifies that the press release includes non-GAAP financial measures, specifically Adjusted EBITDA and Free Cash Flow, which are used to supplement U.S. GAAP information. It emphasizes that these measures should not be considered in isolation or as substitutes for GAAP measures and may not be comparable to those of other companies - This press release contains **non-GAAP financial measures**, including **Adjusted EBITDA** and **Free Cash Flow**[18](index=18&type=chunk) - Non-GAAP financial measures are used to **supplement U.S. GAAP information** and should **not be considered in isolation or as a substitute** for relevant U.S. GAAP measures[19](index=19&type=chunk) - **Adjusted EBITDA** is defined as net income (loss) adjusted for various non-cash and non-recurring items, while **Free Cash Flow** is net cash provided by (used in) operating activities less capital expenditures[20](index=20&type=chunk)[21](index=21&type=chunk)

Company Overview - Redwire Corporation (NYSE: RDW) is a provider of mission-critical space infrastructure, often referred to as the "picks and shovels" for space companies [1] Stock Performance - The stock of Redwire has experienced a significant increase of over 470% in the last year, but it has subsequently dropped 50% from its peak [1] Acquisition - The finalization of Redwire's acquisition is a notable event that may impact its future performance [1]

Industry Overview - The Aerospace and Defense industry is experiencing a strong demand outlook, characterized by high barriers to entry and significant aftermarket opportunities [1] - Growth in the industry is expected to exceed GDP growth, driven by increased defense spending and potential mergers and acquisitions (M&A) [1] Event Details - Gabelli Funds, LLC is hosting the annual Aerospace & Defense Symposium on September 4, 2025, at The Harvard Club in New York City [1] - The symposium will feature top executives from over ten companies, providing opportunities for one-on-one meetings with management [1] Featured Companies - Notable companies participating in the symposium include AIRO Group Holdings, Elbit Systems, Albany International, Graham Corporation, and Textron, among others [2]

Core Viewpoint - Barratt Redrow shares experienced a significant decline due to warnings about legacy issues impacting profits and lower-than-expected home completions [2][4] Financial Performance - The company expects to incur additional legacy property liabilities of £248 million, with £98 million related to fire safety and reinforced concrete frame issues [3] - Adjusted pre-tax profit is predicted to meet market expectations after stripping out these adjustments [3] - Cost synergies of £69 million have been achieved from the Redrow acquisition, with a target of total savings of £100 million [3] Completions and Forecast - Total home completions for the year were 16,565, down from 17,972 in the previous year and below the forecast of 16,800-17,200 [4] - For the current financial year, total completions are projected to be between 17,200 and 17,800, including 600 from joint ventures [5] - The medium-term target remains at 22,000 completions per year [5] Cash Position and Share Repurchase - The company ended financial 2026 with net cash of £772 million, a decrease from £868.5 million in the prior period but above expectations [5] - Plans to repurchase up to £100 million of shares by the end of the current financial year have been announced [5] Market Outlook - The CEO noted a solid performance despite a challenging market, with adjusted profits aligning with market expectations [6] - There is a long-term structural under-supply of housing in the UK, which may support future demand [7] - Analysts have mixed views, with some noting that sales rates are improving despite hurdles like increased stamp duty and slow planning approvals [8]

Company Overview - Redwire Corporation (RDW) shares increased by 6.3% to $16.64 in the last trading session, following a period of 19% loss over the past four weeks [1] - The stock is currently rated as a "Moderate Buy" by Wall Street analysts, with six out of eight brokerages recommending it as the company strengthens its position in the aerospace and defense sectors [2] Financial Performance - Redwire is expected to report a quarterly loss of $0.11 per share, which reflects a year-over-year improvement of 59.3% [2] - Revenue projections for the upcoming report are $100.85 million, indicating a 29.1% increase compared to the same quarter last year [2] Earnings Estimates - The consensus EPS estimate for Redwire has been revised 63.3% higher in the last 30 days, suggesting a positive trend that may lead to price appreciation [4] - The correlation between earnings estimate revisions and stock price movements indicates that the recent upward revision could result in further strength for RDW [3][4] Industry Context - Redwire operates within the Zacks Aerospace - Defense industry, which includes other companies like Textron (TXT) [4] - Textron's consensus EPS estimate has decreased by 0.2% to $1.44, representing a 6.5% decline from the previous year [5]

Core Insights - Redwire Corporation (RDW) shares increased by 7.6% to close at $16.53, supported by high trading volume, and have gained 18.2% over the past four weeks [1][2] Company Performance - Redwire highlighted a strong 30% growth and profitability during its presentation at the Jefferies Space Summit, emphasizing its expansion into the defense market through strategic acquisitions like Edge Autonomy [2] - The company is expected to report a quarterly loss of $0.11 per share, reflecting a year-over-year change of +59.3%, with revenues projected at $106.8 million, up 36.7% from the previous year [3] Earnings Estimates - The consensus EPS estimate for Redwire has been revised down by 88.2% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - Despite the positive revenue growth expectations, the negative trend in earnings estimates suggests caution regarding future stock performance [4] Industry Context - Redwire Corporation is part of the Zacks Aerospace - Defense industry, where Northrop Grumman (NOC) recently closed 3.1% lower at $484, with a 6% return over the past month [5] - Northrop Grumman's consensus EPS estimate remains unchanged at $6.73, representing a year-over-year change of +5.8%, and currently holds a Zacks Rank of 4 (Sell) [6]